US Fed announces small interest rate hike amid global banking chaos

 

The US Federal Reserve has raised interest rates for the ninth consecutive time despite the recent turmoil in financial markets brought about by the collapse of California's Silicon Valley Bank and New York's Signature Bank.

Fed policymakers voted unanimously to raise their benchmark interest rate by a quarter of a percentage point to just under 5%. At least 10 of 18 Fed policymakers still expect rates to rise by the same figure by the end of this year.

The rate hike will make it more expensive for people carrying a balance on their credit cards or seeking car loans. The Fed has raised concerns over the rising cost of services such as streaming TV subscriptions and airline tickets, which have contributed to inflation.

Meanwhile, consumer prices continue to climb, with annual inflation remaining well above the 2% target set by the Fed.